The emotional impact in gold savings

Dear friends, to be wealthy does not require us to be rocket scientists, but instead, having the right set of habits would do. Just like how the wealthy individuals have been doing all along.

One way that I can recommend to mimic the behaviour of rich people is by starting the habit of gold saving for the long term horizon.

From our observations, even as the gold price appreciate many-fold, the biggest issue faced among the gold savers is the reluctance to sell their gold savings. This indirectly means gold has a strong emotional impact on the savers, unlike those who save in cash.

This reluctance behaviour would contribute more to the amount of wealth one has. Based on my experience since 2018, I have been a firm buyer of gold without looking at the price. My thought process goes like this: I would be selling if either of these two occurs:

• I am desperate for cash to manage my expenses after depleting my emergency fund
• I would like to convert from one asset to another

Am I being out of the ordinary when I think like this?

The secret to wealth is not in the ROI

We are so occupied with finding the next significant Return On Investment (ROI) to make our wealth grow exponentially. However, we overlooked (me included) the fact that the loss we all experienced was due to the underlying emotions, not the negative ROI. As we get emotionally driven to spend our money, we indirectly create a ‘leak’ in our savings. We stop spending when we have no money left.  

Does this ring a bell to you?

If that is the case, perhaps gold can be a solution. If you are pleased by spending money on gold, it is still acceptable because gold is just another form of money (Hint: gold is bona fide money). Hence, gold does not only help us to save money; it also protects us from overspending.

If you find this article useful, consider sharing this with your friends and family. Let's create awareness about our money because nobody will come forward to help us.

Easy way to start gold savings can be found here: Gold Accumulation Program

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Hope you find it useful.

Your buddy on gold investing,

Naresh G